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Question 1

What is the founders agreement

Answer 1

A written document that deals with split of the equity amongst the founders of the firm, how they will be compensated, how much work they put into the firm, and how long they have to remain.

Question 2

What does the founders agreement contain?

Answer 2

• Nature of the prospective business
• Identity and proposed titles of founders
• Legal form of business ownership
• Division of ownership of stock
• Description of how business will operate
• Identification of any intellectual property
• Provisions for resolving disputes
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Question 3

Forms of business ownership

Answer 3

sole proprietorship
partnerships
general partnership
Limited partnership
c corporation
s corporation
LLC

Question 4

Who are members of the team

Answer 4

Management, Key Employees, BOD, Other Proffesionals, Lenders and Investors, BOA, Founders

Question 5

• Personal qualities that affect the founder’s chances of being successful

Answer 5

1. Search skills
2. Foresight
3. Creativity
4. Computer skills
5. Prior entrepreneurial experiences
6. relevant industry experience
7. networking
8. higher education

Question 6

Board of Directors

Answer 6

panel of individuals who are leceted bya c orporations shareholders to oversee the management of the firm.

Question 7

BOD is made of

Answer 7

Inside and Outside directors.

Question 8

Board of Advisors

Answer 8

panel of experts that provide consistent counseling and advice. No legal responsibility of firm, nor nonbinding advice.

Question 9

Liability of newness

Answer 9

comapnies fail because of owners inability to adjust to new roles, and unnorganized track records

Question 10

similar areas of expertise

Answer 10

homogeneous teams

Question 11

diverse abilities and experiences

Answer 11

heterogeneous teams

Question 12

Some differences between homoegeneous ad heterogenneous teams

Answer 12

pov, hiring decisions, important activities,

Question 13

Why most new ventures need fianncing

Answer 13

1. Cash flow challenges: not enough cash to operate
2. Capital investments:raise money to fund these
3. Lengthy product development cycles: ex. Takes 2 years to develop a video game

Question 14

Types of financing

Answer 14

personal, debt, equity, creative

Question 15

1. Sweat equity and personal funds
2. Friends and family
3. Bootstrapping: saving money or getting money by any means creativitly

Answer 15

personal financing

Question 16

debt financing

Answer 16

getting a loan from comercial banks

Question 17

angel invesstors, priate placemet, venture capital

Answer 17

equity financing

Question 18

leveraging other peoples money

Answer 18

creative financing

Question 19

SBIRR and STTR

Answer 19

government grants

Question 20

variation of the sbir for collaborative research projets that involve small business and research organization

Answer 20

STRR

Question 21

SBIRR

Answer 21

grant program that provides 2.5 billion a year to small business stage development projects

Question 22

why is intellectual property important

Answer 22

consists of valuable intellectual intangible assets such as patents, trademarks, domain name. Can be just very costly to lose

Question 23

types of intellectual property

Answer 23

patents, trademarks, copyrights, trade secrets

Question 24

utility
plant
design

Answer 24

types of patents

Question 25

most common patent for new inventions

Answer 25

utility

Question 26

new original, ornametal designs for manufacturing

Answer 26

design

Question 27

service marks
collective marks
certification marks

Answer 27

trademarks

Question 28

protects words, numbers and latters, designs or logos, sounds, fragrances,

Answer 28

trademark

Question 29

any word, name symbol, or device used to identy or distinguish ones company

Answer 29

trademark

Question 30

characteristics of a good trademark

Answer 30

1. words that provoke particular images
2. words that create a favorable impression about a product or service
3. inherently distinctive
4. creativity and strength

Question 31

process of obtaining a trademark

Answer 31

select an appropriate mark
perform a trademark search
create rights in the trademark

Question 32

exclusions from copyright protection

Answer 32

1. copyright laws cannot protect ideas but written descriptions are acceptable
2. statistics

Question 33

one work derives from another, an exact copy or similarity

Answer 33

copyright infringement

Question 34

any formula, pattern, physical device, idea, process that give sinfo to provide the owner with a competitive advantage

Answer 34

trade secret

Question 35

protecting your trade secrets

Answer 35

2. Not known outside company
3. Known only inside company
4. Developed at great cost, time and effort
5. Cannot be duplicated, reverse engineered, or discovered
6. Safeguarded by confidential information
7. Valuable to company by developing a competitive advantage